Gross Domestic Product of Thailand. GDP growth rates. Income Disparity between the Provinces.
Updated June 2017 with latest available data available from NESDB (National Economic and Social Development Board) of Thailand
NESDB* : National Economic and Social Development Board of Thailand.
Chart not inflation corrected.
GNP in Thailand stood at 212,862 Thai Baht for 2016 (can still be adjusted a bit in the coming year).
Below, the data as available by the World Bank. PPP (purchasing power parity) method is used here, which makes for quite a difference. GNP per Capita of 203,356 Thai Baht in 2015 corresponds to GNI per Capita of 15,520 U.S. Dollar with PPP data by the World Bank. Simply put, a U.S. Dollar gets you much further when buying or producing goods in Thailand than in the U.S.
Thailand GNI per Capita, as provided by World Bank, April 2017.
The World Bank sets the GDP per capita (PPP method) at 15,520 US Dollars for 2015.
When comparing with the GDP - PPP (purchasing power parity) method from the World Bank, the difference with the real data in Thai Baht by NESDB is huge.
GDP Growth in Thailand from 1980 till 2016.
Thailand Gross Domestic Product has been growing substantially over the last few decades . Between 1960 and the Asian crisis of 1997, GDP annual growth oscillated between 5 and around 10 percent per year.
From 1988 to 1990 there was growth substantially higher than 10 %.
The Asian economic crisis of 1997 caused a first (and substantial) drop into negative territory. Afterwards growth overall seems to trend around 5 % per year. A second dip into negative territory occurred with the global crisis of 2008-2009 with negative growth of -0.7 % in Thailand in 2009. Growth in 2010 was measured at 7.5 %, this despite significant policital disturbances.
2011 showed minor growth overall of 0.8 %, caused by heavy flooding in North en Central Thailand at the end of that year. Strong rebound to 7.2 % the following year. Growth in the following years
2.7% (2013), 0.8 % (2014, major political crisis), 2.8 % (2015), 3.2 % (2016, provisory). Growth in 2017 is predicted between 3.0 and 3.5 %.
GDP Composition for Thailand by End Use.(*) : Investment 24.1 %, Inventories 1.4%.
(**) : Exports 65.4%, Imports 56.9%.
Household Consumption is the largest component of GDP. The downside is that the domestic debt is continually rising, now at 5,736 billion baht, around 90,000 baht per person, and much more per household. The price to pay for most people having a motorcycle and a mobile phone. As of the last few years, the government (not completely happy with private investment), has been initiating numerous infrastructure projects, mostly railway and public transport upgrades, but there are everlasting delays in the implementation.
As for the composition of GDP by origin : Agriculture 8.9 %, Industry 35.9 %, Services 55.3 %.
Data provided by CIA Factbook for 2014, shows 32.2 % of labor in agricultural sector, 16.7 % in industry, and 51.1 % in services. The number of people working in the agricultural sector has been decreasing steadily but slowly over the years.
ADD-On : GDP in the provinces of Thailand
Data for 2015 have recently become available (numbers below updated mid 2017).
What is even more interesting than the GDP figures for the whole of Thailand, are the data for the different regions and provinces of the country. The static data for 2015 (as provided by the Office of the National Economic and Social Development Board of Thailand (NESDB), show that there are great differences in Gross Domestic Product (GDP) per capita between the different regions and provinces..
The Gross 'Provincial' Product in the Northeast (Isaan) and to a lesser extent in the North, is substantially lower than in Bangkok, the Central and the Eastern Region. The Gross Provincial Product of the Southern and Western Regions is situated in between.
GDP in Bangkok and surrounding provinces is 5 to 6 times bigger than in the poorest (and most populated) Isaan Region of Thailand.
Note that the data provided here are expressed in Thai Baht and indicate real GDP, as compared to the data provided by the World Bank which show the PPP value.
The figure belows shows :
Regional GDP (GRP) is higher than the average for Thailand in the Eastern Region, Bangkok and Vicinity, and the Central Region.
It is lower in the Southern and Western Region, and much lower in the Northeast and North of the country. For location of regions in Thailand, look : Provincial GDP in Thailand.
GDP growth in Thai baht from 2001 and 2012 for different regions of Thailand.
The static latest GDP numbers of course do not reveal recent trends in income across Thailand. When looking at the data as provided by NESDB for the period between 2001 and 2012, it is clear that there is a pronounced difference in GDP growth rate between Bangkok (and its surrounding provinces) and the other regions of Thailand.
While the Northeast and the North of the country still have an enormous way to go, growth of GDP development is promising. For all his faults, the policies of the Thaksin Shinawatra governments between 2001 and 2006 (universal health care, a farm debt moratorium, village microcredit programs, entrepreneurial programs and rice price pledging schemes) may have been beneficial.
Figure below : Growth is significantly higher in the Northeastern and Northern Region, while continuing in the Eastern Region (heavy industry, petrochemical industry). The growth of GDP in the Bangkok area is significantly lower than the average for Thailand.
Partly these trends can also be explained by demographic changes. The population of Bangkok and its vicinities has increased dramatically over the last decade, while the population especially in the Northeast has decreased. Likely a lot of 'low-wage' migration has occurred from the poorest provinces towards Bangkok.
GDP growth rates in different regions of Thailand (2001 GDP set to =100).
Current market prices GDP growth is used, so the absolute numbers (not corrected for inflation)
are not that useful. Just compare the trends in different regions, with Bangkok showing the slowest growth.
The number of people working in the agricultural sector, to a large extent, explains the low GDP in the northern and northeastern region of Thailand.
Needless to say, the income disparity, though improving, that presently exists, will continue to remain for some time and has negative social and political effects. Whatever side one chooses, the social and political upheaval over the last 10 years or so in Thailand, can be related to the 'awakening of the masses'. The genie is out of the bottle and can't be pushed back in. Politicians of all sides should have seen this coming a long time ago.